Is the altcoin season really here?

Bitcoin’s market share has fallen below 60% – a key signal. Total cryptocurrency market capitalization is up 6.9%, but excluding Bitcoin, it’s up a whopping 11.94%. What does that mean? It means that money is flowing from bitcoin to altcoins, and market rotation has begun. DOGE is leading the way with an 8.68% gain, XRP is above $3.30, SOL is at $180, and all types of torrents are on the rise.

The market share metric is very informative. Bitcoin is like the “large-cap blue chips” of the cryptocurrency market, and its high share indicates that funds are skewed toward conservative allocations. Once the share falls below 60%, it indicates that investors are becoming more risk-averse and are looking for investments with higher return potential. This kind of rotation is common in bull markets: after Bitcoin kicks off its rally and gains a foothold, money flows into altcoins.

Why is this happening now? First, the regulatory environment has improved, with the U.S. SEC’s Project Crypto loosening the reins on altcoins. Second, institutional funding continues to flow in, and there is plenty of liquidity in the market. Most importantly, many Altcoin projects are indeed advancing real progress, with substantial breakthroughs in areas such as decentralized finance (DeFi), Layer2 solutions, and cross-chain technology, and they are no longer purely speculative “air coins.”

Investment strategies need to make adjustments now. When Bitcoin dominated the market, a full position in Bitcoin was sufficient. Now that cottage coin season is upon us, it’s time to start diversifying — but not by buying blindly. It’s important to choose projects with real value and examine fundamentals such as their technological innovation, team strength, community activity and ecological development status.

There are several areas of interest. Decentralized Finance (DeFi) remains the mainstay, with innovations emerging and Total Volume Locked (TVL) continuing to grow.Layer2 solutions are in strong demand, as Ether’s congestion is difficult to solve in the short term. Gaming and meta-universe concepts could make a comeback; the last wave of the boom has passed, but technology continues to advance and new breakout applications could emerge at any time. Crypto projects that combine with artificial intelligence (AI) are also worth keeping an eye on, and the convergence of these two hot tracks could create unexpected chemistry.

Risk tips remain important. Altcoins are much more volatile, rising and falling quickly. Project quality varies, and the probability of stepping on a mine is not low. Don’t put all your money into a single project, it’s wise to diversify. Set stops, control position sizes, and don’t get carried away by “fear of missing out” (FOMO). Altcoin season is indeed here, but that doesn’t mean you can make money by buying with your eyes closed. Do your homework and invest rationally to make real gains in this market.